3 pma salehuddin - resource and project management
TRANSCRIPT
TABLE OF CONTENTS
CHAPTER TITLE PAGE
TABLE OF CONTENTS i
LIST OF TABLES iii
LIST OF FIGURES iv
LIST OF ABBREVIATIONS v
LIST OF APPENDICES vi
1 INTRODUCTION 1
1.1 Project Proposal 1
1.2 PMA Question 2
2 METHODOLOGY 3
3 PROJECT PROPOSAL 4
3.1 EXECUTIVE SUMMARY 4
3.2 PROJECT BACKGROUND 5
3.2.1 Project Overview 5
3.2.2 Project Initiative 6
3.3 PROJECT TEAM AND ORGANISATION 6
3.3.1 Feasibility and Benchmark 6
3.3.2 Evaluation Criteria 9
3.3.3 Past Experience 12
3.3.4 Organisation and Human Resource 12
3.4 PROPOSED PROJECT APPROACH 16
3.4.1 Technical Approach 16
3.4.2 Project Diagram 21
3.4.3 Deliverable Specification 21
3.4.4 Project Schedule 22
3.4.5 Implementation Plan 22
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3.4.6 Statement of Work 25
3.4.7 Administration Plan 29
3.4.8 Logistic Support 30
3.4.9 Quality Plan 31
3.4.10 HSE Plan 41
3.4.11 Risk and Mitigation Plan 44
3.5 COST AND PAYMENT APPROACH 50
3.5.1 Cost Estimate 50
3.5.2 Type of Contact 50
3.5.3 Payment Terms 52
3.6 CONTACT 53
REFERENCES 54
Appendices A - F 56-61
iii
LIST OF TABLES
TABLE NO. TITLE PAGE
3.3.2 Evaluation Criteria 10-11
3.48a Logistic Plan Guideline 30
3.48b Sample of Logistic Support 31
3.4.11 Risk Register 47-49
iv
LIST OF FIGURES
FIGURE NO. TITLE PAGE
3.3.4a Project Organisation Chart ............................................................ 12
3.3.4b Human Resource Histogram .......................................................... 15
3.4.4 Project Scheduling ......................................................................... 22
3.4.5a Project Flowchart ........................................................................... 23
3.4.5b Work Breakdown Structure ........................................................... 24
3.48 Logistic Supply Chain ................................................................... 30
Appendix A Location of Project Site ................................................................. 56
Appendix B Site Plan ......................................................................................... 57
Appendix C Floor Plan ....................................................................................... 58
Appendix D Elevation Plan ................................................................................ 59
Appendix E Site Accessibility Plan ................................................................... 60
Appendix F Utilities Plan .................................................................................. 61
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LIST OF ABBREVIATIONS
BC - Building Code
BP - Building Plan
EMOSHM - Executive Masters in Occupational Safety and Health Management
GMP - Guaranteed Maximum Price
HIRARC - Hazard identification, Risk Assessment and Risk Control
HSE - Health, Safety and Environment
IIF - Incident Injury Free
IPD - Integrated Project Delivery
PCG - Project Control Group
PMA - Post Module Assignment
QA - Quality Assurance
QC - Quality Control
RFI - Request for Information
RFP - Request for Proposal
RMK - Rancangan Malaysia Kesepuluh
SDIS - Safety Data Information Sheet
SF - Square Feet
MR - Minimum Requirement
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LIST OF APPENDICES
APPENDIX NO. TITLE PAGE
A Location of Project Site 56
B Site Plan 57
C Floor Plan 58
D Elevation Plan 59
E Site Accessibility Plan 60
F Utilities Plan 61
INTRODUCTION
1.1 Project Proposal
Project proposals are made with one goal in mind: to convince that you are
the right person for the job. It is essentially a project bid that requires a detailed
analysis of the project that can take weeks or months to complete. Gido and
Clements (2003) states that a project proposal is a selling document and not a
technical report. In the proposal the contractor must convince the Client that the
contractor:
(1) Understands what the customer is looking for.
(2) Can carry out the proposed project.
(3) Will provide the greatest value to the customer.
(4) Will capitalize on its successful experience with previous related
projects.
(5) Will do the work professionally.
(6) Will achieve intended results.
(7) Will complete the project within budget and on schedule.
(8) Will satisfy the customer.
Project proposals should be written in a simple concise manner and must
specifically address the customer’s requirements as laid out in the RFP. It should
also be realistic, in terms of the proposed scope, cost and schedule, in the eyes of the
Client. According to Wysocki, Beck and Crane (2000), project proposals can have
any number of attachments accordingly to the project from feasibility studies to best-
of-breed analysis and should contain the following:
(1) Description of work activities.
(2) Resources required to complete each activity.
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(3) The scheduled start and end date.
(4) Estimated cost and completion date of the project.
`Cleland and King (1988) states that a project proposal consists of three
separate proposals that is the; commercial proposal, project execution proposal and
technical proposal. Each of the mentioned proposals can stand on its own as a
separate document or combined into one project proposal. In many cases, these three
types of proposal documents are usually inclusive in one project proposal.
Finally, it is critical that the terms and condition portion of the proposal be
reviewed and approved before submission of the proposal to the customer.
Kerzner (2001) further mentions that the legal representative is responsible for the
preparation for the type of contract and terms portion of the proposal. Generally,
contracts with the legal department are handled through or in coordination with the
proposal group.
2.1 PMA Question
The PMA provided by Dr Mohd Yusof Md Daud (2013) queries the
following: Develop a project proposal base on the following area (select one topic
only). You are encouraged to write the project proposal in which you are familiar
with or you have some extend of experiences in the particular project as your case
study. If you are selecting real case project (finished or ongoing) you can use the
same title as in your real project.
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The topic selected for this PMA is:
ANY CONSTRUCTION PROJECT / SUB PROJECT
Guidelines: Contents may include in the proposal:
i. Project overview
ii. Project initiative
iii. Feasibility study and benchmark
iv. Possible project risk at the initial and ongoing project and
mitigation plan
v. Organisation and human resource planning
vi. Project planning (use tool such as Gantt Chart, WBS)
vii. Include all the flow chart / appropriate diagram
viii. Add other key element (optional) to enrich your proposal
METHODOLOGY
Methodology is the manner, method, procedure, way or approach that will be
used to attain, achieve, and accomplish the PMA question. The method used is
application of knowledge gained from the classes attended so far during EMOSHM,
refer to project management books and using real project proposals collected as
examples. I have only managed to acquire small portions of several project proposals
throughout the search of a full project proposal document due to the confidentiality
of its content towards the contractors and Clients. When comparing the several
project proposals, it is discovered that project proposals may take different formats
and usually depends on the requirement of the Client or RFP. Therefore, a large part
of the PMA proposal will be fabricated in assumption using the project management
books as guidelines in order to produce a complete project proposal.
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PROJECT PROPOSAL
3.1 EXECUTIVE SUMMARY
XYZ Berhad is pleased to submit a proposal to provide a project proposal of an
Education College for a private company. This project is located on land area of 37,
787 SF with the necessary car-parking facilities and infrastructure. The entire
development will be constructed in different phases. The following are the planned
phases by the Client:
(1) Phase 1 – To construct college block as per diagram in appendix.
(2) Phase 2 – To construct car-parking facilities as per diagram in
appendix.
(3) Phase 3 – To construct all roadways, landscape areas and other
associated facilities to support the functioning of Phase 1 and 2.
Our proposal is based on the type, duration, and the number of people deployed to
provide the service plus the head office technical service group support required to
effectively deliver the service. As requested by the Client, the project proposal will
address the following:
(1) Project Overview
(2) Project Initiative
(3) Feasibility and Benchmark
(4) Evaluation Criteria
(5) Past Experience
(6) Organisation and Human Resource
(7) Technical Approach
(8) Project Diagram
(9) Deliverable Specification
(10) Project Schedule
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(11) Implementation Plan
(12) Statement of Work
(13) Administration Plan
(14) Logistic Support
(15) Quality Plan
(16) HSE Plan
(17) Risk and Mitigation Plan
(18) Cost Estimate
(19) Type of Contact
(20) Payment Terms
3.2 PROJECT BACKGROUND
3.2.1 Project Overview
XYZ Berhad has established a track record in Malaysia for creating quality
developments. It is understood that ABC is desirous to procure the services of an
international organisation possessing the suitable expertise to assist them in the
development of Education College Project. Before listing the project overview, it is
important for us to show the designs and authority submissions understanding as
follows:
(1) We understand that the submission has been made and the necessary
approval obtained.
(2) We understand, the (BP) submission is yet to be made to the
authorities and is expected to be submitted for approval by the Client around
mid December 2013.
(3) We understand that the soil investigation works is currently ongoing
and hence the piling and the structural design is yet to be finalised.
(4) We understand the Architectural design is yet to be fully developed
and finalised by the Client.
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3.2.2 Project Initiative
The Education College Project is visional in supporting the Tenth Malaysia Plan
(RMK) from the aspect of education. In addition, it will also boost the economy with
its education business. It will also contribute in innovating science and technology
by the research conducted in the college. The land area used for the project site
which is barren and unsuitable for agricultural purpose will also be utilized for a
good cause. Finally, the Education College will also provide job opportunities for
Malaysia.
3.3 PROJECT TEAM AND ORGANIZATION
3.3.1 Feasibility and Benchmark
We believe that Client will benefit from the experience and capability that XYZ
Berhad can bring to this project. We are also confident that we have the capability to
provide world class professional services to Client in the realization of this project.
We look forward to develop a mutually beneficial relationship with Client on this
project and in future world class professional services to the Client in the realization
of this project. From the abovementioned, XYZ Berhad is exceptional in the
following:
(1) Legal Feasibility.
(2) Operational Feasibility.
(3) Economic Feasibility.
(4) Technical Feasibility.
(5) Schedule Feasibility.
(6) Market and Real Estate Feasibility.
(7) Resource Feasibility.
(8) Cultural Feasibility.
(9) Financial Feasibility.
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Our global experience and local understanding in managing commercial, retail, hotel
and residential projects will be an invaluable aid in achieving the international
standard of quality within a challenging timetable. This is proven by the following:
Technical and Industry Sector Knowledge. We understand our Clients’ business and
the financial drivers of their industry. By combining this sector knowledge with our
solid technical and commercial grounding, we are able to consistently produce a
better financial outcome for our Clients.
Innovative Effective Solutions. Innovation is a business process at XYZ Berhad. We
are constantly innovating what and how we deliver. Our innovations whether at
design, procurement or construction stages always ensure that we exceed Client’s
expectations whilst minimizing the total project cost.
Flexibility to service the needs of our Clients. Whilst we have strong operating
processes and protocols, our Clients can choose from a wide array of service
offerings that can be tailored to their particular circumstances. Our flexible approach
ensures that we deliver what and where the Client wants us to deliver.
Global Experience with Local Expertise. XYZ Berhad has a track record of
delivering projects throughout the world which has been operating for more than 20
years and has delivered more than 100 projects in the region. Our global track record
combined with our profound understanding of Asian culture, local code
requirements, suppliers & subcontractors, ensures that world’s best practices can be
delivered locally.
Surety of Delivery. XYZ Berhad has the necessary financial strength and resources
to manage the outcome of a project, notwithstanding the specific project constraints
like geography, bureaucracy, availability of materials and equipment etc. We pride
ourselves with a corporate history of having delivered projects within the time
committed by us and to Client’s satisfaction. Our surety of delivery sets us apart
from the strongest of our competitors.
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Lowest End Cost. XYZ Berhad has the ability to bundle all the project services
required on a project into an integrated offering for the Client, which maximises
value for money for the Client. Our experience, and that of our repeat Clients,
repeatedly confirms our long held belief that the sum of the unbundled project
services is always more than that of an integrated bundle.
The Best People in the Industry. XYZ Berhad believes that its true assets are its
people. We boast of having the best people in the industry who have technical,
commercial, managerial and industry sector specialisation. To be at the forefront of
our industry and several steps ahead of the competition, XYZ Berhad continually
invests in training of its people. The quality of our people is one of the important
factors behind XYZ Berhad’s ability to consistently generate Maximum Value for
our Clients.
Relationship Driven. At XYZ Berhad, a Satisfied Client is our ultimate goal. We see
ourselves as an extension of the Client addressing issues in the best interests of the
Client, and not as a supplier to our Clients. We put our Clients’ interests ahead of
profits, and that is why more than half of our business comes from repeat Clients. We
highly value the trust and confidence that our Clients place in us.
Environmental, Health and Safety in Delivery / Site Safety. XYZ Berhad are
committed to operate (IIF). In this regard, we proactivelywork with all stakeholders
to make this vision a reality. Therefore, XYZ Berhad’s way is putting Safety First
and never compromising on it. XYZ Berhad have a set of minimum safety
requirements called (MRs) that is implemented in every project site. These are: Fall
Prevention, Logistics, Ground & Civil Works, Lifting & Slinging, Electrical Safety,
Health, Protective Equipment & Welfare, Fire & Emergency, Environment.
The following are our previous projects and track record as the benchmark:
(1) Petronas Twin Towers in KLCC, KL.
(2) KL Sentral, KL.
(3) Crowne Plaza Mutiara, KL.
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(4) Won the first ever Platinum Award under Singapore BCA’s Green
Mark scheme.
(5) The first project to be awarded a 5-Star rating under the Green Star
scheme in Australia.
(6) Targeted to be the first 6-Star Green Star rated Building in Australia.
(7) The development is targeted to achieve a Platinum Award under the
Green Mark Scheme.
3.3.2 Evaluation Criteria
The project must address and may be awarded point sup to the amount listed of each
of the following criteria by the Client. The evaluation criteria given by the Client is
on the next page.
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Table 3.3.2 : Evaluation Criteria
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Table 3.3.2 : Continued
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3.3.3 Past Experience
Capability and Experience. XYZ Berhad has a combined staff strength of more than
17,000 highly qualified professionals worldwide. We employ a combination of
expatriates and local staff. Many of the expatriate Project Managers have been
working and living in Asia, bringing international project management knowledge
from the West and marrying that to an understanding of the culture of the East gained
through their years spent in the region. Many of our Asian Project Managers were
educated abroad and have extensive working experience in international
environments and firms. Most importantly, they speak the local language.
Experience and Knowledge in the Development of Similar Commercial Projects.
XYZ Berhad has extensive global and Malaysia experience in managing similar
development projects. Our extensive Project and Construction Management
experience, will be a strong support to the Client.
3.3.4 Organisation and Human Resource
Figure 3.3.4a : Project Organization Chart
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The following is a brief description of the roles and responsibilities of the key
positions within our proposed Project Team. XYZ Berhad Project Team will be the
single point of contact for Client in this project (Within the XYZ Berhad Team, the
Project Manager would be the primary contact). The team will deal with the design,
procurement and commercial issues and shall consist of specialist professionals
dedicated to the project including:
The Project Manager is responsible for the day to day operational direction of his
element(s) during all phases of the works where he is supported by the Assistant
Project Managers. The Project Manager reviews and monitors design and
construction activities to ensure delivery in accordance with Client’s requirements.
The Project Manager has rights to stop any works that is carried out unsafely or that
is non-compliant to MR for safety.
Other Project Team Members. assist the Project Manager in all aspects of the project
including management of the Consultants and the Contractor. They oversee the day to
day operations including overall progress, quality, contractor’s HSE compliances, and
coordination with the other Project Team members.
Safety Officer. in conjunction with the Project Manager will impart the HSE global
minimum requirements and will provide the point of contact for monitoring
compliance with authority’s occupational safety and health regulations during
construction activities. The Safety Officer will have to be empowered by the Client
to stop any non-safety compliant works or unsafe conditions/situation that they deem
is necessary during the day to day operations. He will then report these non
compliances to the Project Manager.
Project Control Group (PCG). The PCG meetings are proposed to be held routinely
and form the most important management review function for the Project. They are a
forum for regular, open and formal interaction between senior management of the
Client and XYV Berhad in order to maintain a consistent overview and reasoned
involvement in major decisions. The role of the PCG is to:
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(1) Review and accept presented reports and submissions;
(2) Give direction or make decisions;
(3) Resolve different viewpoints (if any);
(4) As required, refer items back to the team for additional work or re-
presentation;
(5) Highlight unresolved issues; and
(6) Review project and contractual status.
As such, the PCG meetings are not intended as problem-solving sessions, this being
within the domain of the regular weekly meetings. The PCG meetings are
formalized with pre-distributed agendas and reports covering all key aspects of the
project. Agendas include reference to the resolutions to be sought from the meetings.
Formal minutes with agreed action items are prepared by XYZ Berhad following
each meeting and distributed to all parties. Previous meeting minutes must be
adopted before proceeding with the next meeting. The PCG papers and minutes
provide a convenient and centralized method of recording the latest project status and
contractual position. As the project proceeds, the extent of reporting against each
item will vary. It is recommended, however, that the agenda items remain as an
additional project discipline. Issues dealt with at the PCG’s would include:
(1) Procedural.
(2) Schedule.
(3) Authorities.
(4) Quality Control.
(5) Construction Report.
(6) Contractual Report.
(7) Project Completion Report.
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Whereas the main jizz of our human resource planning are as follows:
Staff Acquisition. The project staff will consist entirely of internal resources. There
will be no outsourcing/contracting of staff within the scope of this project. The
Project Manager will negotiate with functional and department managers in order to
identify and assign resources in accordance with the project organizational structure.
All resources must be approved by the appropriate functional/department manager
before the resource may begin any project work. The Project Team will not be co-
located for this project and all resources will remain in their current workspace.
Resource Calendars. The Project will last for 72 months. All resources are required
before the project can begin. The resource histogram below illustrates:
Figure 3.3.4b : Human Resource Histogram
Training. There is currently no training scheduled with regards to the Project since
the organization has adequate staff with required skill sets. However, if training
requirements are identified, funding will be provided from the project reserve.
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Performance Reviews. The Project Manager will review each team member’s
assigned work activities at the onset of the project and communicate all expectations
of work to be performed. The Project Manager will then evaluate each team member
throughout the project to evaluate their performance and how effectively they are
completing their assigned work. Prior to releasing project resources, the Project
Manager will meet with the appropriate functional manager and provide feedback on
employee project performance. The functional managers will then perform a formal
performance review on each team member.
Recognition and Rewards. Although the scope of this project does not allow for
ample time to provide cross-training or potential for monetary rewards there is
several planned recognition and reward items for Project Team members.
3.4 PROPOSED PROJECT APPROACH
3.4.1 Technical Approach
During the construction phase of the project, we will provide all management and
related services as necessary to adequately supervise, monitor and coordinate the
work. Our Team will manage all conditions of the site work rules and will establish
and monitor safety, security, cleaning and other conditions. The following items are
also critical to a successful construction project and will be provided by XYZ
Berhad.
Our team will implement the following key activities that were developed during the
pre-construction phase:
(1) Verification of project schedule.
(2) Expedition of long lead items.
(3) Expedition of purchasing and buyouts.
(4) Verification of accelerated release of critical material.
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(5) Confirmation of each action reviewed in preconstruction.
(6) Verification of the record keeping and audit trails.
Our Team will establish lines of authority in order to execute the project in a
coordinated and efficient basis and will prepare a chart graphically indicating those
lines of authority.
Our Team will establish, implement and maintain procedures to assure coordination
among the Architect,consultants, subcontractors, and all local municipal authorities,
governmental agencies, utility companies, etc., who may be involved in the project.
Our Team will prepare and develop an on-site record keeping system, which will be
sufficient in detail to satisfy an audit by the owner. Such records shall include, but
will not be limited to, daily logs, progress schedules, manpower breakdowns (daily
by trade), financial reports, quantities, material lists, shop drawing logs, etc. In the
event that an interpretation of the meaning and intent of the contract documents
becomes necessary during construction, our Team will ascertain the Architect’s
interpretation and transmit such information to appropriately.
Our Team will hold weekly job meetings with the owner’s representatives,
Architects and other necessary parties to discuss procedures, progress, problems,
scheduling, and open items.
Our Team will constantly review the adequacy supervision, personnel, equipment
and the availability of necessary materials and supplies. When inadequate, our team
will direct the necessary action to be taken by the subcontract involved.
Our Team will assist the Client in obtaining the general building permits and
Certificates of Occupancy as required, and will coordinate the obtaining of all legally
required permits, licenses and certificates. We will assemble these documents from
the contractors and deliver them at the completion of the work.
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Our Team will coordinate all work until final completion and acceptance of the
project by the Client, including a comprehensive final inspection to ensure that the
materials furnished and work performance are in accordance with the contract
documents.
Coordinate Testing and Inspection. XYZ Berhad will develop and enforce a quality
control system in order to ensure that the highest required standards of construction
are met. Our Team will develop a checking and testing procedure to ensure that all
systems are adequately tested and balanced prior to their acceptance.
Our Team will coordinate all testing provided by others, as required by the technical
sections of the specifications, and as required by the building code.
Our Team will keep an accurate record of all tests, inspections conducted and test
reports.
Our Team will coordinate the services of professional Engineers, and the Architect,
as required by the building codes, for work, if any, that would be performed for the
owner directly.
Coordinate Shop Drawings Submissions. XYZ Berhad will receive and review for
compliance with the contract documents, all shop drawings, materials and other
items submitted by the subcontractors. Requests for approval, delivery schedules,
material lists, shop drawings, samples, plus more, will be commented upon and
submitted to the Architect for concurring approval. Approvals of technical adequacy
of shop drawings and samples will remain the duty of the Architect. We will oversee
the submission of all shop drawings, composite shop and coordination drawings,
brochures and material samples
Labor and Community Relations. XYZ Berhad will make recommendations, as
necessary, for the development and administration of an effective labor and
community relations program for the project and for avoidance of labor disputes
during construction.
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Changes in the Work. XYZ Berhad will establish and implement procedures for
controlling and processing change orders that will satisfy the owner’s requirements.
Our Team will maintain adequate cost accounting records with respect to portions of
work, if any, performed on a time-and-material, unit cost or similar basis which
require the keeping of records and computations.
General Conditions Items. XYZ Berhad will provide general conditionsitems as
required by the project for clean-up, hoisting, temporary facilities, protective field
offices and field telephone for the use of owner representatives and their consultants.
Our Team will provide adequate personnel to supervise those items and will
constantly track and report on General Conditions expenses.
Proactive Scheduling. The schedule will be used as a tool to discuss deliveries and
installation sequences. Any problems or issues will be addressed accordingly and the
schedule will be adjusted to reflect the changes, if necessary. We will update the
current schedule and review it against the baseline schedule to identify potential
conflicts or impacts due to the latest adjustments. The schedule will then be
discussed with the owner and subcontractors reviewing possible solutions to
minimize the impacts and take proactive steps necessary to insure that the project
will be delivered on time and within budget.
Closing Out the Project. At the proper time, the Project Team will coordinate with
the Architect the preparation of a punch list indicating the items of work remaining
to be accomplished and will ensure that these items are completed in an expeditious
manner. Our Team will prepare certificates of substantial and final completion, as
required, and will assemble all guarantees, warranties, etc., as required by the
contract documents, and will forward them to the owner, certifying that they are
complete and cover all work as required. Our Team will coordinate and expedite the
preparation by the subcontractors of operating manuals and similar instructions. Our
Team will also obtain the Architect’s approval to ensure that they are sufficiently
comprehensive and will forward them to appropriate personnel. XYZ Berhad will
work closely with all project personnel relative to start-up following project
completion. This not only includes maintenance personnel, but also personnel who
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need to have a working understanding of the building to do their job properly. This
provides the owner with the comfort of knowing our Team is still available, if
needed, to oversee repairs or replacements of specific construction-related items.
Whether a large project or a small one, the XYZ Berhad Team follows a meticulous
methodology that provides the Client with a step-by-step process outlining each of its
many tasks necessary to the successful completion of the project. The ultimate goal
is the commitment of our Team to do whatever is required to make the construction
of every project a consummate success.
Proactive Scheduling. The XYZ Berhad Team approach is to be proactive in
scheduling. Achieving predictable project outcomes is a process that depends on
current and accurate information, communication, and teamwork. We strive to great
lengths to produce an initial target schedule incorporating requirements from all
parties including: owners, designers, contractors, suppliers and end users. This
establishes the baseline schedule that serves as a measuring point for the entire
project. By focusing on the initial scheduling plan we have essentially minimized the
potential problems that will slow down the project. We use Primavera, the most
comprehensive scheduling program available, as our scheduling software. The
Project Team will review the 14-day look-ahead schedules weekly during the
subcontractor’s and owner’s coordination meetings. The schedule will be used as a
tool to discuss deliveries and installation sequences. Any problems or issues will be
addressed accordingly and the schedule will be adjusted to reflect the changes, if
necessary. The Project Team will update the current schedule and review it against
the baseline schedule to identify potential conflicts or impacts due to the latest
adjustments. The schedule will then be discussed with the Client and subcontractors
in order to review possible solutions to minimizing impacts and methods of taking
proactive steps necessary to insure that the project will be delivered on time and on
budget.
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3.4.2 Project Diagrams
The initial proposed inception of the project are in the diagram/site plan as shown in the
appendix section of the project proposal. Please refer to the appendices section.
3.4.3 Deliverable Specifications
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3.4.4 Project Scheduling
Figure 3.4.4 : Project Scheduling
3.4.5 Implementation Plan
Referring to the Gantt Chart in the Project Scheduling above, an estimated of 26
million construction hours will be required throughout the duration of the project.
The construction workforce is estimated to peak in late 2014 and early 2015. The
site construction labour force is based on a 14 days on 7 days off, two-shift, 10 h/d
rotation. Lessons learned from previous large project experiences will be applied to
develop and maintain control strategies for efficient project execution. A detailed
implementation plan will be produced once the contract with XYZ Berhad is agreed
upon which will include; development and execution, Engineering and procurement,
temporary facilities, project camp and transportation and construction according to
the phases of the project. The following figures are the implementation flow chart
and work breakdown structure:
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Figure 3.4.5a : Project Flow Chart
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Figure 3.4.5b : Work Breakdown Structure
Figure 3.4.5b : Continued
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3.4.6 Statement of Work
A detailed statement of work according to the scheduled milestone and other
requirements consisting of period of performance, place of performance and work
requirements (kickoff, design, implementation and closure). The scope of work for
the project are:
Project Strategy: Prepare an overall master program setting out the summary of
major activities and overall project duration and major milestones.
Conceptual Cost Estimate: Based on conceptual design monitor and manage the
Quantity Surveyor to prepare an elemental Conceptual Cost Estimate.
Procurement Strategy: Develop a strategy of how the construction will be procured
(contract packaging), taking into consideration specific project conditions in terms of
time, design, local and international resources, long lead deliveries, local
requirements, site-wide purchasing opportunities and standard contract
documentation, with input from the Client’s Consultants.
Project Organisation Structure: Prepare project specific organization plans and
structures and define responsibilities and reporting relationships.
Project Procedures Manual: With the Consultants prepare the Project Procedures
Manual, to cover project details, directory, communications, reporting, financial
matters, meetings, drawings, circulation of correspondence, bid packages, tenders,
payments, defects liability and certification requirements.
Construction Strategy: Develop a preliminary overall construction strategy of the
Site including phasing and sequencing, logistic and safety plan.
Design Process Management: With the Design Team, establish detailed design
programs and identify deliverables including drawings, design calculations,
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specifications and quality control procedures. Monitor design progress, identify
programme divergence and recommend remedial action. Solicit from the Client’s
Consultants and report on cost and time effects of design changes. Monitor that the
Lead Architect holds regular Design Team meetings to resolve outstanding matters.
Document Control Implementation: With the Design Team, implement document
issue, numbering, coding and distribution system.
Project Cost Plan: When the design develops to the degree where the quantities and
specifications are available, monitor and manage the Quantity Surveyor to develop
the elemental Conceptual Estimate into a detailed elemental Cost Estimate which,
when agreed with the Client, becomes the Project Cost Plan.
Cost Management: Assist the Client in establishing the Project Budget using the
Project Cost Plan. Monitor the Project Budget throughout the Project life. With the
Quantity Surveyor provide the Client with information on the financial status of the
Project, actual cost against Cost Plan, cash flow analyses and forecasts, impact of
change orders and forecast anticipated cost needed to complete the Project. Review
and advice on payments to Contractors and Consultants.
Liaise with Authorities: Assist the Client in liaison with government authorities,
statutory agencies and utility companies i.e. planning permits, building regulations,
transportation, water and power.
Procurement / Pre-contract & Bidding: Implement strategies, plans and guidelines for
the procurement of all Project services. Solicit interest and assist in the development
of bid lists, pre-qualification and tender schedules, and attend Bid Clarification
Meetings.
Contract Documentation: Determine scope of contracted elements, advice on the
preparation of contractual terms, and monitor and manage the preparation of
construction contracts or purchase orders.
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Buildability Analysis: Undertake buildability analysis and review main contractors’
method statements with a view of optimising proposed methods of construction in
terms of cost, time and quality.
Pre-Construction Works: Advice and assist the Design Team and the Client in
obtaining all requisite approvals, for pre-construction activities.
Schedule Management: Establish schedule reporting formats, manage and report on
the progress against the established Master Programme. Develop detailed schedules
as necessary for easy monitoring purposes.
Contract(s) Tender & Award: Manage the tender process, evaluate and recommend
award of construction contracts and on behalf of the Client, issue formal notices to
proceed.
Detailed Design: Review and monitor the completion of designs and specifications
within the programme.
Construction: On behalf of the Client, periodically review progress and performance,
chair weekly site meetings and advice on any issues.
Monitoring of Construction Progress: Review, monitor and advice on the
construction progress against schedule.
Quality Assurance / Quality Control: Review and advice on the Quality Assurance /
Quality Control implemented by the Architect & consultants of the Client.
Site Safety: On behalf of the Client, periodically review and audit the Contractor’s
HSE plan for implementation and compliances.
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Document Control Implementation (where applicable): With the Project Team,
review and if necessary, recommend document issue, numbering, coding and
distribution system.
Change Order Management: Review and advice on the Change Order reporting
system.
Performance Measurement: Report on progress as the project evolves, in terms of
work performed and progress achieved, tying together physical progress and
financial status. Review compliance and assess performance of all Project
participants.
Cost Management: Review the Client’s Project Budget. Monitor the cost of changes
prepared by the Quantity Surveyor against the budget. With the Quantity Surveyor,
Architect, provide the Client with information on the financial status of the project,
actual cost against cost plan, cash flow analyses and forecast, impact of change
orders and forecast anticipated cost needed to complete the Project.
Reporting: Assemble monthly reports which include progress photographs, status of
design, permits or licenses, performance, schedule report, cost / financial reports,
bonds, problem areas and recommendations for action.
Commissioning: Review and advice on the procedures for the commissioning of all
services that are established and implemented by others.
Additional Services: Additional services shall be all other services required by the
Client that are not outlined in basic services above and shall be subject to such
additional fees to be agreed with the Client. For the avoidance of doubt, should the
scope of the Project increase substantially beyond the basic services, or the basic
services are required to be performed beyond the scheduled period as specified in the
agreement, such services shall be deemed to be additional services subject always to
prior written approval of the Client, provided always that such approval shall not be
unreasonably withheld. Should the Client request any additional services required
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completing the Project during the period of the agreement; the Project Manager shall
be compensated for based upon a monthly fee to be agreed with the Client. The
Project Manager shall notify in advance the Client in writing and to obtain the
Client’s prior written approval provided always that such approval shall not be
unreasonably withheld, before such additional services are to be performed by the
Project Manager.
3.4.7 Administration Plan
This detailed administration plan after the award of contract to XYZ Berhad is
intended to:
(1) Identify needs and resources for administering contracts.
(2) Identify team members for construction administration.
(3) Establish interrelationships of team members and relative authority
and responsibilities.
(4) Establish procedures and processes for the timely approval of change
orders, claims and field adjustments.
(5) Provide for decision making at the lowest level possible for change
orders, claims and field changes.
(6) Provide mechanisms for timely and routine meetings between the
Contractor and the construction administration team during construction;
Reports and Monitoring. In addition to any other reports and forms required for
construction management, the Project Team must submit the following reports on a
weekly basis:
(1) Daily Inspection Reports.
(2) Weekly Contract Time Summary.
(3) Weekly Quantity and Cost Estimate Summary
These reports shall be submitted to the Project Manager. The Project Manager then
submits a Monthly Project Status Report to the Client.
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3.4.8 Logistic Support
Figure 3.4.8 : Logistic Supply Chain
Table 3.4.8a : Logistic Plan Guideline
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Table 3.4.8b : Sample of Logistic Support
3.4.9 Quality Plan
DESIGN DEVELOPMENT QA/QC.
Design review will be an ongoing activity, XYZ BERHAD will perform major
reviews of the contract documents. Design changes will be tracked as identified in
the contract. XYZ BERHAD will review drawings at each of the above stages of
completion to ensure constructability and functionality. These reviews will also be
used to ensure that schedule and budget remain in compliance with the original RFP.
XYZ BERHAD will provide contract document timeline requirements to the
consultants to ensure that the overall project schedule is maintained.
ARCHITECTURAL QA/QC.
Unless otherwise excluded from the scope of work, the Architect will carry out a
general review of the construction work at intervals appropriate to the stage of
construction, which the Architect consider necessary to determine if the work is in
general conformity with the contract documents. The general review of construction
will be carried out and will include the following:
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1. Commences during the design and documentation phases with review of the
required quality and performance of each Architectural component.
2. Project is continued with appropriate documentation to establish levels of quality
and performance.
The Architect will:
1. Review mock-ups and field samples of work, when requested by XYZ BERHAD,
for compliance with drawings and specifications, and if necessary to establish quality
control standards for the work.
2. Attend meetings with XYZ BERHAD, their Client and suppliers to assist in
resolution of construction, sequencing and quality control matters.
3. Review work during the course of construction, on a random sampling basis for
conformance with the requirements of the documents and good acceptable trade
practices.
4. Review finished areas of work for acceptance, recording deficiencies and
providing a written report to XYZ BERHAD on the day of the inspection.
5. Follow up with XYZ BERHAD to review work redone and deficiencies corrected.
6. Coordinate with the quality control/assurance work of others (structural,
mechanical, electrical, etc.) to ensure consistency of approach, level of quality
assurance and reporting documentation.
7. Keep current and updated Architectural drawings to assist XYZ BERHAD in
preparing as-builts at completion of project.
8. Certify payment for construction work, monthly progress draws and holdback
release.
9. Certify upon completion to the authorities having jurisdiction where the work has
been built in conformance with the approved drawings and specifications.
STRUCTURAL QA/QC.
Field Review of Concrete Construction:
1· The classes of concrete exposure and strengths of concrete required for different
elements of the structure.
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2· Special requirements for some elements such as minimum cement content, special
aggregate grading, super-plasticizers in columns, walls or slabs on grade.
3. Concrete testing procedures on high strength concrete.
4· Verify that proposed mixes have been submitted and that they are acceptable
specified tolerances.
5· Requirements for review of formwork construction by Engineer responsible for
formwork design.
6· Curing procedures.
7· Hot & cold weather protection requirements.
8· Requirements for saw-cutting of slabs on grade.
9· Review and approve conduit and sleeving requirements
Excavation and Foundations QA/QC:
1· Excavation Shoring
2· Review with XYZ BERHAD requirements for monitoring location and movement
of shoring, for testing of tie-backs and installation of lagging.
3· Review site visit reports submitted by Engineer.
4· Review geotechnical reports submitted by the Engineer.
Foundations QA/QC:
1· Confirm with XYZ BERHAD that bearing conditions at footings and verified that
they are acceptable for the support of the loads at the design pressures.
2· Check the dimensions and reinforcement of column and wall footings / piles.
Formwork QA/QC:
1· Review with XYZ BERHAD the requirements for camber and elevation survey of
formwork for slab pours as outlined in the specification.
2· Review with XYZ BERHAD proposed stripping and re-shoring sequencing.
3· Review reports of site review of formwork and shoring.
4· Before concrete is placed, confirm that forms are clean of debris and other foreign
material by a random check of the form area.
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Concrete Walls QA/QC:
1· Grade walls with minimum reinforcement
2· Review length of wall pours with XYZ BERHAD.
3· Check wall pour for dimension, cleanliness of forms, reinforcement size, and
cover of pours.
4· Review inspection reports of concrete supplied.
5· Check wall thickness, rebar size, spacing, cover, placement and length of wall
pours.
6· Review inspection reports of concrete supplied.
Columns QA/QC:
1· Check the dimensions, rebar size and placement of columns poured.
2· Review inspection reports of concrete supplied.
Slabs QA/QC:
1· Check slab thickness, rebar size, spacing, cover and chairing of the slab pour
areas.
2· Check beam dimensions, rebar size, quantity cover and chairing of beams.
3· Review inspection reports of concrete supplied.
Beams QA/QC:
1· Check beam dimensions, rebar size, quantity, cover and chairing of rebar.
2· Review inspection reports of concrete supplied.
Tolerance for Suspended Concrete Flat Slab QA/QC:
1· Review with XYZ BERHAD the specified floor finish tolerances and camber
requirements.
2· Review results of survey of finish of concrete surface taken before formwork is
removed.
3· Review results of survey of slabs taken after shoring is removed.
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Slabs On Grade QA/QC:
1· Review requirements for sub-base.
2· Review the report of compaction testing carried out, and ensure the subgrade is
acceptable.
3· Review with XYZ BERHAD the specified floor finish tolerances.
4· Check slab thickness and location of bulkheads for construction joints.
5· Review the proposed curing methods and that compatibility with subsequent
finishes has been considered.
Precast Concrete QA/QC:
Review that the appropriate level of quality assurance is provided in the
interpretation of the design requirements, the preparation of shop drawings, the
manufacture of components and in the assembly of the components in the field.
Structural Steel QA/QC:
1· Review with the structural steel subcontractor their proposed procedures for
welding inspection.
2· Review painting requirements specified versus paint on steelwork delivered to
site.
3· Review reports submitted by structural steel subcontractor.
Load Bearing and Engineered Masonry QA/QC:
1· Review with XYZ BERHAD which masonry (if any) is Engineered.
2· Review with XYZ BERHAD the test required for Engineered masonry.
3· Review reports prepared if Engineered masonry is used.
4· Review typical bearing details and anchorage.
Masonry Based On Engineered Analysis QA/QC:
1· Review with XYZ BERHAD supply of masonry units to specified strength, mortar
and grout requirements.
2· Check reinforcement size, spacing and placement.
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MECHANICAL QA/QC.
Engineer or delegate under his supervision, shall:
1. Make periodic visits to the site to determine that the work is in general conformity
with the mechanical plans and related specifications for the mechanical systems;
2. Record mechanical deficiencies found during site visits and provide written
reports of the deficiencies to the Architect and XYZ BERHAD– this report is to be
issued on the day of the inspection;
3. Review and take action if necessary, the reports of independent inspection, testing
called for in the mechanical plans and related specifications and which pertain
directly to the work being reviewed;
4. Attend mechanical / electrical site coordination / commissioning meetings and
others when requested to do so by XYZ BERHAD;
5. Interpret mechanical plans and related specifications when requested to do so;
6. Review shop drawings and samples submitted for compliance with the intent of
the mechanical plans and related specifications.
Underground Plumbing QA/QC:
1· Hot and cold weather protection requirements.
2· Bedding materials and installation.
3· Incoming service connections.
4· Sleeving.
5· Quality and standard of workmanship.
6· High pressure steam.
7· Welding.
8· X-ray.
Above Ground Plumbing QA/QC:
1· Installation of drainage products.
2· Pipe installation, materials, hangers and venting.
3· Sleeving.
4· Quality and standard of workmanship.
5. Unions or flanges: provide for ease of maintenance and disassembly.
6. Space for servicing, disassembly and removal of equipment and components.
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7. Equipment drains: pipe to floor drains.
8. Install equipment, rectangular cleanouts and similar items parallel to or
perpendicular to building lines.
ELECTRICAL QA/QC.
The general review, which shall be carried out by a Professional Engineer of delegate
under his supervision shall:
1. Make periodic visits to the site to determine that the work is in general conformity
with the electrical plans and related specifications for the electrical systems;
2. Record electrical deficiencies found during site visits and provide written reports
of the deficiencies to the Architect and XYZ BERHAD’s General Superintendent;
3. Review the reports of independent inspection, where these pertain directly to the
work being reviewed;
4. Attend mechanical / electrical site coordination / commissioning meetings and
others when requested to do so by XYZ BERHAD ;
5. Interpret electrical plans and related specifications when requested to do so by
XYZ BERHAD;
6. Review shop drawings and samples for compliance with the intent of the electrical
plans and related specifications.
Field Review of Underground Conduit and Services QA/QC:
1· Incoming services.
2· Concrete duct-banks.
3· Concrete encasement of slab-on-grade raceways.
4· Raceway materials.
5· Quality and standard of workmanship.
Field Review of Conduit in Suspended Slabs QA/QC:
1· Conduit routing.
2· Conduit crossings.
3· Materials.
4· Quality and standard of workmanship.
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Field Review of Cabling QA/QC:
1· Cable installation.
2· Cable termination.
Field Review of Lighting & Equipment QA/QC:
1· Fixture support and alignment.
2· Equipment mounting.
3· Equipment designations.
4· Equipment locations.
5· Resolving coordination conflicts arising on site.
6· Quality and standard of workmanship.
CONSTRUCTION INSPECTION & TESTING PLAN QA/QC
XYZ BERHAD’s inspection and testing plan for the Education College has been
developed by drawing on information available in the RFP, as well as the experience
of XYZ BERHAD Staff and input from the Client. Inspection of materials and work
in progress will be the responsibility of XYZ BERHAD to ensure that the work
conforms to the contract documents and is ready for testing or inspection by an
independent testing agency.
Field Inspection QA/QC:
1. Pre-Work Coordination Meetings: Prior to any trade contractor starting work, a
pre-work coordination meeting will be held. XYZ BERHAD’s Project Manager will
chair the meeting and prepare an agenda. At a minimum, the meeting agenda will
cover contract, submittal, quality control, training, safety and environmental
requirements of the contract documents, as well as work and coordination
procedures.
2. Follow-Up Inspection: XYZ BERHAD will monitor the work on a daily basis to
assure the continuing conformance of the work to the workmanship standards.
Architect will provide site review as required by BC. Follow-up inspections will be
39
monitored by XYZ BERHAD Quality Control to ensure all deficiencies are
corrected.
3. Completion Inspection. When an area of work is complete, XYZ BERHAD
Quality Control will conduct completion inspections. Deficiencies will be noted on a
deficiency list. The appropriate testing agency will perform testing for those sections
of work as noted.
Approved Material Inspections QA/QC:
All materials, equipment, etc. to be incorporated into the work will be subject to
periodic inspection by the Quality Control staff. XYZ BERHAD will utilize a five
point field inspection:
1· Proper identification
2· Damage
3· Evidence of prior acceptance
4· Completeness
5· Proper documentation
Material Test Procedures QA/QC:
1. Testing. Take random samples and test them for conformance with the contract
documents. These results will be distributed to all parties. The Quality Control will
review all test results and follow up as appropriate.
2. Samples. Approved samples of materials to be incorporated into the job will be
maintained in the site office for use in comparing to installed material. Site mock-
ups, as required, will be maintained during construction at a designated location on
site.
Re-Work Procedures QA/QC:
All deficiencies or deviations from specified requirements, with respect to quality,
workmanship, materials, equipment or supplies will be dealt with in the following
manner:
1. Deficiencies to be noted on Inspection Report.
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2. Deficiencies will be immediately corrected and Quality Control to ensure
reinspection is performed and all deficiencies corrected.
3. Track deficiencies using the central inspection record log.
4. The XYZ BERHAD Project Manager and Quality Control will meet with all
parties involved in any deficiency to determine a solution to the problem. The
solution will then be recorded and implemented in accordance with contract
documents. Once the deficiency has been rectified, the Quality Control Inspector will
re-inspect the original deficiency in regard to the agreed solution. If warranted,
deficient work which cannot be satisfactorily corrected in place will be removed and
replaced at the written direction. All such re-work shall be performed using
procedures written and approved.
DOCUMENTATION FOR NON-CONFORMITIES
Each inspector for the Architect shall submit a list of deficiencies to XYZ BERHAD
following each inspection. XYZ BERHAD will log these items on a central
deficiency log, and distribute the inspection reports to the Client. A copy of the log
for each inspection will be printed off and placed in a binder in the job site plan
room. Once the deficient item has been corrected and reinspected, the inspector will
sign off against the item in the plan room binder copy.
DOCUMENTATION/RECORDS
Quality Control records will be maintained by XYZ BERHAD’s Quality Control.
The quality control files will be protected from deterioration or damage throughout
the period of the contract. Hard copies of all quality control records will be
maintained in file cabinets. An electronic database will be utilized to facilitate
retrieval of documents. The quality control records will be indexed and filed within
the XYZ BERHAD filing system.
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CHANGES TO CONTRACT
Change Orders, Variations and RFI will be issued to the Architect and applicable
parties. All drawings will be kept up to date with changes or technical information
being recorded and logged as revisions are received. Trade contractors affected by
Change Orders or RFI will be notified as quickly as possible. All RFI will be posted
and distributed to all affected parties. A master log book for recording all Change
Orders will be maintained by XYZ BERHAD. Voided drawings or documents will
be marked as such.
AUDITING PROCEDURES
XYZ BERHAD’s Project Management Team and the XYZ BERHAD Peer Review
Team will perform periodic audits of the Quality Control Program, including Quality
Control and Quality Assurance Programs. These audits will verify to the authority
that the required quality is being maintained and that the records reflect the actual
quality of the work.
3.4.10 HSE Plan
MANAGEMENT STRUCTURE AND RESPONSIBILITIES
The responsibilities of the site management team such as the site manager, site
foreman and Safety Officer can be found within the company’s health and safety
policy within the health and safety folder in the site office.
HEALTH AND SAFETY TARGETS FOR THE PROJECT – SETTING
STANDARDS
1. This project will be completed with no major injury accidents.
2. All workers will attend appropriate safety induction and tool box talks that will be
recorded and monitored.
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HEALTH AND SAFETY ARRANGEMENTS
1. Regular Liaison. This is achieved via progress meetings, which will include a
health and safety item on the agenda. The discussions and actions arising from each
meeting will be noted and distributed to all interested parties for further
dissemination within their respective organisations. The Safety Officer will carry out
toolbox talks on site. When appropriate the arrangements for communicating with
workers who do not speak Bahasa Malaysia or English as a second language will be
followed. These are detailed within the company’s health and safety policy in the
health and safety folder which is located in the site office.
2. Consultation With the Workforce. Employees and sub-contractors are encouraged
to raise health and safety issues and concerns with the site foreman on an ongoing
basis and during toolbox talks. SDIS will be made available to any employee or sub-
contractor who wishes to see them.
3. Handling Design Changes During Construction Phase. The site manager will
consult with the Client if any significant design changes arise during the course of
construction which give rise to additional significant risks. (eg. the hollow core floor
slabs will be a contractor design). These can be discussed during the progress
meetings.
3. Site Security/Access. The site security requirements identified in the site security
risk assessment will be fully implemented.
4. Site Induction. All those working on site will be briefed during the induction stage
on the main risks associated with the site and relevant information. The site foreman
will check for evidence of competence when personnel arrive on site which may
include training records. Visitors will be given a brief site induction – they will be
accompanied at all times. A young person’s risk assessment will be carried out at this
stage for all personnel who are under 18 years of age and this will be held in the
company’s health and safety folder located in the site office.
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5. On Site Training. Where appropriate, on the job training will be given under the
supervision of a competent person. Details of training will be recorded and held in
the company’s health and safety folder within the site office.
6. Welfare Facilities and First Aid Arrangements. Welfare facilities such as site
office, canteen facilities and a toilet connected to a foul sewer will be on site within a
compound for the duration of the contract. The welfare facilities provided will
contain hot running water, heating and facilities for heating food. During the
induction, all employees and visitors will be adviced of the location of the welfare
facilities and canteen. There will be an appointed person/first aider on site, along
with a fully stocked first aid kit located in the site office. There will be a mobile
phone available on site to summons an ambulance if needed. Details of the local
hospital will be located within the site office. To prevent the infestation of rodents all
food will be consumed within the designated canteen area. Personnel are not
permitted to consume or be under the influence of alcohol or illegal substances on
site.
7. Reporting Of Accidents, Incidents and Near Misses. All accidents must be
reported and recorded (health and safety folder located in the site office). An
accident book can be used for this purpose. All accidents will be investigated to
prevent any re-occurrence. The site foreman will be responsible for completing a
HIRARC form where necessary and will advice the site manager of all accidents,
incidents and near misses. All HIRARC forms will be forwarded to Safety Officer by
the site manager.
8. Production and Approval of Method Statements. The residual risk register
provided by the designer, the SDIS and the risk assessments will all be used to
inform the method statements for the project. The site manager/site foreman will
review and explain all method statements to the appropriate personnel, who will be
carrying out or affected by the particular work activity. The site manager will arrange
for any additional risk assessments and method statements to be written if necessary.
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9. Site Rules. All those working on this project will be briefed on the site rules
during the induction stage.
10. Fire and Evacuation Procedures. Fire and evacuation arrangements will be
displayed in the site office and canteen.
HIRARC
A detailed HIRARC will be prepared and regularly updated once the project is
commenced. These will be the responsibility of the Safety Officer for controlling
significant site risks. The risk assessments can be found within the company’s health
and safety folder located in the site office.
3.4.11 Risk and Mitigation Plan
RISK MANAGEMENT APPROACH
The approach we will take to manage risks for this project included a methodical
process by which the Project Team identified, scored, and ranked the various risks.
The most likely and highest impact risks were added to the project schedule to ensure
that the assigned Risk Managers take the necessary steps to implement the mitigation
response at the appropriate time during the schedule. Risk Managers will provide
status updates on their assigned risks in the bi-weekly Project Team meetings, but
only when the meetings include their risk’s planned timeframe. Upon the completion
of the project, during the closing process, the Project Manager will analyze each risk
as well as the risk management process. Based on this analysis, the Project Manager
will identify any improvements that can be made to the risk management process for
future projects. These improvements will be captured as part of the lessons learned
knowledge base.
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RISK IDENTIFICATION
For this project, risk identification is be conducted in the initial project risk
assessment meeting. The method used by the Project Team to identify risks was the
Crawford Slip method:
1. Expert Interview. The interviews revealed several risks which were then mitigated
by making changes to the project plan. The remaining risks are included in the Risk
Register.
2. Risk Assessment Meeting. A risk assessment meeting was held with key team
members and stakeholders. The risks identified during this meeting were added to
the project plan and Risk Register.
3. Historical Review of Similar Projects. The Project Team reviewed the history of
similar projects in order to determine the most common risks and the strategies used
to mitigate those risks.
RISK QUALIFICATION AND PRIORITIZATION
In order to determine the severity of the risks identified by the team, a probability
and impact factor was assigned to each risk. This process allowed the Project
Manager to prioritize risks based upon the effect they may have on the project. The
Project Manager utilized a probability-impact matrix to facilitate the team in moving
each risk to the appropriate place on the chart. Once the risks were assigned a
probability and impact and placed in the appropriate position on the chart, the
recorder captured the finished product and the Project Manager moved the process
on to the next step: risk mitigation/avoidance planning.
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RISK MONITORING
The most likely and greatest impact risks have been added to the project plan to
ensure that they are monitored during the time the project is exposed to each risk. At
the appropriate time in the project schedule a Risk Manager is assigned to each risk.
During the bi-weekly Project Team meeting the Risk Manager for each risk will
discuss the status of that risk; however, only risks which fall in the current time
period will be discussed. Risk monitoring will be a continuous process throughout
the life of this project. As risks approach on the project schedule the Project
Manager will ensure that the appropriate Risk Manager provides the necessary status
updates which include the risk status, identification of trigger conditions, and the
documentation of the results of the risk response.
RISK MITIGATION AND AVOIDANCE
The Project Manager will lead the Project Team in developing responses to each
identified risk. As more risks are identified, they will be qualified and the team will
develop avoidance and mitigation strategies. These risks will also be added to the
risk register and the project plan to ensure they are monitored at the appropriate
times and are responded to accordingly.
The risks for this project will be managed and controlled within the constraints of
time, scope, and cost. All identified risks will be evaluated in order to determine
how they affect this triple constraint. The Project Manager, with the assistance of the
Project Team, will determine the best way to respond to each risk to ensure
compliance with these constraints.
In extreme cases it may be necessary to allow flexibility to one of the project’s
constraints. Only one of the constraints for this project allows for flexibility as a last
resort. If necessary, funding may be added to the project to allow for more resources
in order to meet the time (schedule) and scope constraints. Time and scope are firm
constraints and allow for no flexibility. Again, the cost constraint is flexible only in
extreme cases where no other risk avoidance or mitigation strategy will work.
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RISK REGISTER
The Risk Register for this project is a log of all identified risks, their probability and
impact to the project, the category they belong to, mitigation strategy, and when the
risk will occur. The register was created through the initial project risk management
meeting led by the Project Manager. During this meeting, the Project Team
identified and categorized each risk. Additionally, the team assigned each risk a
score based on the probability of it occurring and the impact it could potentially
have. The Risk Register also contains the mitigation strategy for each risk as well as
when the risk is likely to occur.
Based on the identified risks and timeframes in the risk register, each risk has been
added to the project plan. At the appropriate time in the plan—prior to when the risk
is most likely to occur—the Project Manager will assign a Risk Manager to ensure
adherence to the agreed upon mitigation strategy. The Risk Manager will provide
the status of their assigned risk at the bi-weekly Project Team meeting for their risk’s
planned timeframe.
Table 3.4.11 – Risk Register
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Table 3.4.11 – Continued
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Table 3.4.11 – Continued
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3.5 COST AND PAYMENT APPROACH
3.5.1 Cost Estimate
3.5.2 Type of Contact
Every construction project has its own set of circumstances that can involve timing,
legal obligations, ownership configuration, limitations, financing objectives, owner
in-house resources, and more. XYZ Berhad construction company offers a variety
types to suit your needs. The following is a list of the basics of the various
contractual arrangements available in order to assist the Client’s decision-making
process:
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1. GUARANTEED MAXIMUM PRICE
A GMP contract is a cost-type contract, in which the construction contractor is
compensated for actual costs incurred, plus a fixed fee subject to a ceiling price. The
contractor is responsible for cost overruns, unless the GMP has been increased via
formal change order as a result of additional scope from the Client. Savings resulting
from cost underruns are returned to the Client.
2. LUMP SUM
The contractor agrees to build a project with a specific scope for a fixed price. A
lump-sum contract is suitable if the scope and schedule of the project are sufficiently
defined to allow the contractor to fully estimate project costs.
3. UNIT PRICE
This kind of contract is based on estimated quantities of items included in the project
and their unit prices. The final price of the project is dependent needed to carry out
the work. In general, this contract is only suitable for projects in which the scope is
reasonably well established, and the different (but not their numbers) can be
accurately identified in the contract documents.
4. COST PLUS
Cost plus is a contract agreement wherein the purchaser agrees to pay the cost of the
work, including all trade contractor work, labor, materials, an amount for contractor
overhead and profit. These types of contracts are favored where the scope of work is
indeterminate or highly uncertain, labor, material, and equipment needed are also
uncertain.
5. COST-REIMBURSABLE ALTERNATIVE
With cost-reimbursable alternative contracts, contractors are paid for the work with a
mix of reimbursable and fixed or incentive costs. Cost-reimbursable contracts are
effective when the general scope of work and schedule are defined, but there is
uncertainty in quantities or execution. Under cost-alternative contracts, uncertainty in
project scope is borne by the Client. Cost-reimbursable alternative contracts offer
significant flexibility for responding that are uncertain. There are different variations
52
of basic cost-reimbursable alternative contracts, including cost-reimbursable plus
fixed fee, cost-performance-based incentives, direct cost-reimbursable plus fixed
construction management costs, and others.
6. INTEGRATED PROJECT DELIVERY/ALLIANCE
IPD contracts, or “Alliance” contracts, represent the latest trend towards a more
collaborative approach to delivering IPD contracts are unique in that they require the
involvement of owners, designers, builders, and key stakeholders on a project as early
as possible— at the conceptual stage. This contract type results in more transparency
among all the parties involved on a construction project. Additionally, both shared by
the parties who enter into the IPD contract, resulting in greater integration of
resources, processes, and expertise than would be possible traditional contract
arrangements.
3.5.3 Payment Terms
XYZ Berhad requires 50% of upfront costs be paid immediately upon award of the
contract. Remaining 50% may be paid upon project close out and beginning of
management and operations of the payroll solution. All monthly fees are due on the
first business day of each month. Any additional work required by the Client outside
of the scope of the contract will be billed separately and will be charged at 50%
immediately upon award of the contract and 50% upon acceptance of the
deliverable(s).
The minimum term for this contract is 12 months from the time of project closeout
and beginning of management and operations of the payroll solution. Any monthly
rate increases for the follow on term will be provided to Archway Consulting no later
than 30 calendar days from the end of the initial 12 month term.
If contract cancellation is required, 90 days of notice must be given by either party.
If the contract is cancelled prior to the completion of the initial term, payment must
be made for all services provided including full payment until the end of the contract
53
term or 90 days, whichever is longer. Late payment fees will be assessed after 30
days. Final terms and conditions will be provided in final contract.
3.6 CONTACT
XYZ Berhad is here to serve you. Please feel free to contact the Project Manager at
any time if you have any questions or require additional information.
XYZ Berhad
(Attn: Salehuddin Bin Abdul Kadir)
123 Jalan Harimau
Bandar Gagah,
40200 Kuala Lumpur
(019-3765957)
www.XYZ-Berhad.com
54
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APPENDIX A: Location of Project Site
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APPENDIX B: Site Plan
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APPENDIX C: Floor Plan
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APPENDIX D: Elevation Plan
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APPENDIX E: Site Accessibility Plan
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APPENDIX F: Utilities Plan